Hong Kong: Hiring your VP of APAC Sales

Check out our top market-norm benefits tips for securing the best talent in a tight labor market.

Mainland China’s economy continues to bustle, and Hong Kong is often favored as a great launchpad into the Mainland and the surrounding territories. A common favorite residence for a seasoned VP of APAC Sales, Hong Kong is one of the top countries our clients request our services.

Hong Kong labor law is well-defined and clear cut, which makes it relatively easy to negotiate with offer letter terms with employees in Hong Kong. Here’s our top market-norm benefits tips for securing the best talent in a tight labor market.

Vacation: Most employers provide at least 14 vacation days to white-collar professionals, and senior executives may command more (3-4 weeks). Statutory minimum is 7 days plus 1 day for each additional year worked with a company.

A 13th month salary or annual bonus is not required but is often granted to employees in Hong Kong. A commission plan may be seen as replacing this for a sales employee. An annual bonus or commission may be equal to 2-3 months’ salary when the economy is strong.

Health and life insurance are often provided to employees as a supplementary benefit. Most executives request supplementary health and life insurance; smaller companies may provide an allowance in lieu of arranging insurance. Globalization Partners can arrange health insurance for employees in Hong Kong as part of our Global Employee Leasing Platform.

The required notice to terminate employment varies with the length of contract; 1 month’s termination notice on behalf of the employer or employee is the generally agreed term and may be used as a guideline after the probation period.

Pension Fund: The Mandatory Provident Fund (MPF) is a compulsory saving scheme which is required to prepare the residents of Hong Kong for retirement. At minimum, we suggest budgeting 5% on top of salary for the employer’s portion of the MPF fund in Hong Kong.

Generally, we recommend budgeting 15% as benefits cost on top of the gross salary to allocate the total employer’s cost including benefits in Hong Kong, including the MPF allocation.

Bret Silverberg

Director, Content Strategy, Globalization Partners

Bret Silverberg joined Globalization Partners in April 2017 as Director of Content Marketing. Bret has extensive experience in publishing, including his background in human resources and employment marketing.

This material has been prepared for informational purposes only, and is not intended to provide, nor should you rely on it for, legal, tax, or accounting advice in any jurisdiction. You should consult your own legal, tax, and accounting advisors as part of your expansion plans.